key terms 1.5-Entrepreneurs and Leaders Flashcards
Definition of an entrepreneur
individuals who typically set up and run a business and take the risks associated with it
Definition of an Intrapeneur
employees who use entrepreneurial skills without having to risk their own money to find and develop initiatives that will have financial benefits for their employer
Definition of profit maximisation
an attempt to make as much profit as possible in a given time period
Definition of profit satisficing
making enough profit to satisfy the needs of the business owner/s
Definition of aims
what business tries to achieve in the long term
Definition of objectives
the goals or targets set by a business to help achieve it’s long term purpose
Definition of sales maximisation
an attempt to sell as much as possible in a given time period// or an attempt to generate as much revenue as possible in a given time period
Definition of the primary sector
production involving the extraction of raw materials from the earth
Definition of the secondary sector
production involving the conversion of raw materials into finished and semi-finished goods
Definition of the tertiary sector
the production of services in the economy
Definition of sole trader/ sole proprietor
a business organisation which has a single owner
Definition of unlimited liability
a legal status which means that the owner of the business is personally liable for all business debts
Definition of partnership
a business organisation that is usually owned by 2-20 people
Definition of deed of partnership
a binding legal document that states the formal rights of the partners
Definition of limited partnership
a partnership where some members contribute capital and enjoy a share of profit but don’t participate in the running of the business,
At least one partner must have unlimited liability
Definition of sleeping partner
a partner that contributes capital and enjoys a share of the profit but takes no active role in running the business
Definition of limited liability
a legal status which means that a business owner is only liable for the original amount of money invested in the business
Definition of limited company
a business organisation that has a separate legal identity from that of it’s owner
Definition of articles of association
a document that provides details of the internal running g of limited company
Definition of certificate of incorporation
a document that declares a business is allowed to trade as a limited company
Definition of memorandum of association
a document that sets out the constitution and states key external details about a limited company
Definition of franchise
a business model in which a business (the franchisor) allows another operator (the franchisee) to trade under their name
Definition of lifestyle business
a business that aims to make enough money and provide the flexibility needed to support a particular lifestyle for the owner
Definition of mutual organisation
a business owned by its members who are customers not shareholders
